Mining 2026

BRAZIL Law and Practice Contributed by: Roberta Bilotti Demange and Marina Bertucci Ferreira, Pinheiro Neto Advogados

considerations will continue to shape regulatory and policy discussions across sectors, including mining. 3.3 Sustainable Development Initiatives Related to Mining One of the main principles of the Brazilian mining reg - ulatory framework is the provision for environmentally sustainable mining. As a result, holders of mining con - cessions are obligated to restore the areas degraded by mining activities. In practical terms, some companies have incorpo - rated sustainable development initiatives not only in preparation for mine closure, but also as part of the operations. Some of those initiatives have the purpose of meeting one or more tasks of the sustainable devel - opment goals. It has also been reported that a few ini - tiatives may involve partnerships with local authorities. However, there are no public policies by the federal government to encourage or foster such initiatives. 3.4 Energy-Transition Minerals Launched in August 2024 by President Lula, the National Energy Transition Policy (PNTE) aims to promote sustainability and reduce greenhouse gas emissions by restructuring Brazil’s energy matrix. It seeks to promote just and inclusive energy transition by addressing environmental goals while mitigating social and economic impacts, reducing energy pov - erty, and ensuring universal access to reliable energy. The PNTE is formed of two instruments, the National Energy Transition Plan (PLANTE) and the National Energy Transition Forum (FONTE). PLANTE outlines long-term strategies for emissions neutrality and sustainable growth, while FONTE facilitates dialogue between government, civil society and the private sector, offering recommendations and promoting transparency in policy development. The PNTE also emphasises international co-opera - tion, technological innovation, energy security and reducing inequalities as foundations for Brazil’s evolv - ing energy framework. Legislative discussions regarding a national policy for critical and strategic minerals have also advanced in Congress. The proposed framework seeks to define

priority mineral groups and to establish guidelines for public policies aimed at fostering investment along the minerals value chain, including exploration, pro - cessing and technological development. The proposal contemplates a combination of regulatory, fiscal and financial instruments, as well as the creation of an institutional governance structure to co-ordinate pol - icy implementation, support research and innovation, and enhance geological knowledge. If enacted, the policy is expected to contribute to greater co-ordi - nation of government initiatives in the sector and to provide additional predictability for long-term invest - ment decisions. 4. Taxation of Mining and Exploration 4.1 Mining and Exploration Duties, Royalties and Taxes Mining activities are taxed in the same way as busi - nesses in general. The Brazilian tax system contains a variety of taxes at the federal, state and municipal levels. In December 2023, the Brazilian National Congress passed a comprehensive consumption tax reform, as detailed below, to take effect in 2026. The approved changes will co-exist with the existing tax legislation outlined in this section 4. Taxation of Mining and Exploration until the conclusion of the transition peri - od in 2033. This tax reform does not alter any relevant rule in terms of income taxation in Brazil. Corporate Income Tax Brazilian corporate income tax (IRPJ) is levied at the federal level at the rate of 15% on taxable profits. A 10% surcharge is levied on the actual profits, pre - sumed profits or profits determined by the tax authori - ties in excess of BRL240,000 per year. Taxable profits are ascertained by deducting the operating costs and expenses from the gross income originating from the company’s core activity and incidental businesses. Some of these costs and expenses are not deduct - ible because of their nature or the amount involved. There are also provisions for tax exemption once a company’s taxable profit has been ascertained.

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